JPYC, a token pegged to the Japanese yen, listed on Upbit on September 17, 2026, becoming the first yen-pegged token to receive a direct Korean won trading pair in South Korea. The token opened near its intended peg at roughly 12 KRW but quickly rose to 37.6 KRW within hours—more than three times its reference value—before returning closer to peg the following day.
The price volatility stemmed largely from South Korea's regulatory framework. Under the Virtual Asset User Protection Act, market-making activities are classified as potential market manipulation, effectively prohibiting professional liquidity providers from stabilizing prices during new listings. Upbit accounted for over 54% of global JPYC spot volume immediately after launch, with trading volume exceeding 2.4 trillion KRW in the initial hours.
The consequences for retail investors were substantial. Data presented to lawmakers showed that more than 21,219 investors purchased JPYC at premiums exceeding 10% above the reference rate in the days following the launch, collectively spending approximately 260 billion KRW. By September 21, some 3,792 of those investors retained positions with aggregate unrealized losses approaching 5 billion KRW.
The incident has prompted South Korean industry participants and lawmakers to push the Financial Services Commission to formally legitimize market-making for digital assets. Proponents are framing this change as part of the forthcoming Digital Asset Basic Act, which aims to create a comprehensive regulatory framework for the Korean crypto market. Legalizing market-making would grant the FSC authority to license and oversee liquidity providers rather than treating them as potential violators.
